A condition that is not favorable for crypto owners, and if such regulations are really implemented in your country it is better to sell than to have to deal with the law.
And you selling your bitcoin can affect the price of it in the market, that would be bad but some says India doesn't have that much bitcoin investors so I think despite the effect of it, it would not be that big. Also, we should not be scared of it for now since it is still in the process, it is still just proposed. Still not implemented and regulated.